View more on these topics

Inflation rises to 3.2 per cent


Consumer price index inflation rose from 3.1 per cent to 3.2 per cent in October, well above the Bank of England’s target, according to the Office for National Statistics.

Retail price index inflation was 4.5 per cent. RPIX, which excludes mortgage interest payments, was unchanged at 4.6 per cent.

Bank of England governor Mervyn King will again be forced to write to the chancellor to explain why inflation is so high.
The Bank of England’s recent inflation report said the outlook for inflation remained notably uncertain.

The Bank of England would normally raise interest rates to cope with a rise in inflation, but so far economic uncertainty has precluded that possibility.

However, the figures make it less likely the Bank will embark on a second round of quantitative easing in the New Year.

The largest contributors to inflation included fuels, beverages, tobacco and financial services, where prices fell by less than a year ago.

The largest downward pressure on inflation came from food.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm